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After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

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After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

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The Pentagon said Iran War costs $29 billion,but the real cost is closer to $200 billion—and counting

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Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
NewslettersFortune CHRO

Get ready for a legal battle as federal worker unions fight it out with Trump in court

By
Azure Gilman
Azure Gilman
and
Sara Braun
Sara Braun
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By
Azure Gilman
Azure Gilman
and
Sara Braun
Sara Braun
Down Arrow Button Icon
February 7, 2025, 8:43 AM ET
adults stand outdoors holding protest signs
Protesters rally outside of the Theodore Roosevelt Federal Building headquarters of the U.S. Office of Personnel Management on Feb. 5, 2025 in Washington, DC.Alex Wong—Getty Images
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Federal workers across the country nervously watched the clock yesterday as they contemplated whether or not to take the Trump administration’s unprecedented mass resignation offer. But the dreaded midnight deadline never came. 

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Instead, a federal judge in Boston delayed the decision until at least next Monday, when the Trump administration is scheduled to face off in court against a coalition of federal worker unions challenging the proposition, which they say is “arbitrary, capricious, and not in accordance with law.”

The plaintiffs argue in their suit that the resignation offer is illegal because of the executive branch’s promise to pay money that’s actually controlled by Congress. They say it also violates the Administrative Procedures Act, which regulates government agencies. 

But Monday’s hearing is likely just the beginning of a much longer legal battle, lawyers told Fortune’s Sara Braun. If the government appeals, they say, there will be a hearing for a permanent injunction, and then a trial on merit. Meanwhile, the lawsuit will likely go from the district court where it is now, to the circuit court, and beyond. 

“I assume this will be taken all the way up to the Supreme Court,” says Peter Rahbar, a leading employment lawyer for the Rahbar Group.  

So far, around 60,000 workers have reportedly taken the resignation offer, NBC News reported—a small percentage of the total workforce. It’s not clear yet how those workers will be affected by the legal back and forth to come over the next few weeks and months.

Although there’s no doubt that federal employees are under massive pressure right now, it turns out getting rid of these workers may be a bit more complicated than just sending a mass email. The majority have a right of notice, a right to appeal, and collective bargaining rules that must be considered, says Rahbar. 

“Federal workers are hard to fire. They have rights that private-sector workers do not have,” he says. “And frankly, I think that’s why a lot of government employees are comfortable rejecting this.”

Azure Gilman
azure.gilman@fortune.com

Around the Table

A round-up of the most important HR headlines.

NFL commissioner Roger Godell is standing by the league’s DEI efforts. Wall Street Journal

The Trump administration is planning to lay off nearly everyone who works for USAID, an agency that leads global development efforts and humanitarian aid. New York Times

The U.S. added 143,000 jobs in January, missing estimates. Bloomberg

Watercooler

Everything you need to know from Fortune.

Tariff talk. Smart companies are creating “tariff war rooms” to deal with Trump’s trade policy upheaval. —Lila MacLellan

Shots fired. Snap CEO Evan Spiegel is beefing with Meta’s Mark Zuckerberg on LinkedIn. —Marco Quiroz-Guitierrez 

Robot future. Researchers say that AI “reasoning agents” will become a reality sooner than you think. —David Meyer

This is the web version of Fortune CHRO, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.
About the Authors
By Azure GilmanDeputy Leadership Editor
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Azure Gilman is the former deputy editor for the Leadership desk at Fortune, assigning and editing stories about the workplace and the C-suite.

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By Sara BraunLeadership Fellow
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Sara Braun is the leadership fellow at Fortune.

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